Thread by @richstemecom

I made a lot of mistakes when I first started in eCom. This thread will help you avoid them. 🧵

Here’s what I would do different dropshipping today: 👇

#1 - Inventory issues

In the past, I was so afraid to scale that I refused to have inventory storage.

I was guided by the traditional dropshipping model and didn’t even care to see the product.

I quickly learned that this is not the brightest idea once you start scaling.

So, I started ordering in bulk, but just enough to cover my “predictions”.

The problem is - I didn’t count on several TikToks going viral and a sudden increase in the demand.

Do you know how much it hurts to go out of stock with hundreds of unfulfilled orders? I hope you never find out!

In the end, I finally realized that not stocking enough products didn’t make me “save” money, it just made me lose money.

Be especially careful running out of stock around Black Friday, Cyber Monday, and holiday seasons.

#2 - Bad suppliers

If you run a general store and collaborate with multiple suppliers or manufacturers, you should know how big of a pain in the a*s bad suppliers can be.

A bad supplier:

- Refuses to negotiate
- Offers no discounts on high MOQs
- Is hard to reach
- Is unresponsive
- Has inconsistent product quality
- Often has shipping delays
- Won’t white-label or private label
- Will ship from China

A good supplier:

- Will grow with you
- Offers bulk discounts
- Respects shipping times
- Dispatches orders on time
- Has a consistent product quality
- Can help your branding
- Will have a warehouse in the US/EU (closer to your customers)

Suppliers can make or break your business. Choose carefully who you work with.

#3 - Stuck to one channel

When I started my eCommerce journey, I struggled with FB ads.

In the end, I managed to make $1M in 2.5 months, but it took me a while to get there.

After a while, I realized that I have to diversify on other social media channels.

I started dropshipping with TikTok, and it literally BOOMED! 💥

I couldn’t believe my eyes when I saw my ROAS.

Definitely better than Facebook! In fact, Facebook is becoming obsolete among dropshippers.

So, lesson learned - don’t depend on just one channel. Be present on multiple social media channels. These are your sales channels - don’t leave money on the table.

#4 - Stuck to one product

My TikTok success was short-lived at first!

My product sales grew at the speed of light and then fell just as fast.

As I later found out, TikTok heavily relies on trends, but these trends have short lifespans.

As soon as a trend dies out, your product follows.

Since I had only one winning product, I had no aces up my sleeve and suffered sudden losses.

Now, I know better than to put all my eggs in one basket.

So, I started testing new products constantly. I try them out, give them time to work with different creatives. I analyze and then scale what works, kill what doesn’t.

Warning - this is a never-ending job that’s, unfortunately, the KEY to dropshipping success.

#5 - Low profits

I left this one last because I believe many of you struggle with low profit margins or AOV.

When I first started dropshipping, I focused on decreasing the price to stay competitive. I soon realized that I make sales, but I work at a loss.

So, instead of lowering my pricing, I decided to increase my prices and the product value.

I had to find a different way to be better than the competition.

Today, I differentiate myself through building a brand around a product, improving on its features, and promoting it in the high-end price range.

Offer a better value and better customer experience, and you can increase your prices and profit margins.

Additional great ways to increase my store’s AOV were upselling and cross-selling at checkout, enabling tips on Shopify, and retargeting campaigns.

#6 - Paid only

Before I landed on TikTok, I used Facebook for dropshipping.

As you might know, Facebook’s organic reach is practically non-existent at this point. So, I was always used to paying for conversions and launching ads to sell.

Once I jumped on TikTok, I noticed that my organic videos are gaining incredible momentum. They’re gaining traction, and some of them even have the potential to go viral. And what do I get - free traffic. Sales that cost me $0!

I was astonished!

It was like Facebook around 2010, seriously.

Slowly, I started getting the importance of organic traffic to your store.

And TikTok isn’t the only way to get organic traffic.

You can use other social media like Instagram, Snapchat, Pinterest, or Twitter to build authority and enjoy free traffic.

Or, start a blog on your store and start writing SEO articles around your niche or product.

The idea is that you rank high on search engines and get targeted traffic organically.

SEO is a long-term strategy but one that works wonders in the end.

My go-to strategy now is a focus on both paid and organic.

Relying on viral and organic without spending on ads could also backfire. Your sales can skyrocket one day and then fall completely the next one.

Follow me to get your daily dose of eCommerce, dropshipping, and TikTok success.
@richstemecom

RT to share the knowledge 💪